Accommodation Excise Tax

Michigan Law

The State of Michigan Public Act 263 of 1974 permits "counties to impose and collect an excise tax on persons engaged in the business of providing rooms for dwelling, lodging, or sleeping purposes to transient guests; to provide for the disposition of the revenues thereof; and to prescribe penalties."

The revenues derived from the taxes imposed pursuant to this act shall among other things, pay the cost of administration and enforcement of the Ordinance, but is primarily used for the promotion and encouragement of tourist and convention business in the County.

Washtenaw County Accommodation Excise Tax Ordinance

The Washtenaw County Accommodation Excise Tax Ordinance was adopted by the Washtenaw County Board of Commissioners and became effective 9/1/1975 [Original Ordinance]. The purpose of this Ordinance is to raise money to promote and encourage tourist and convention business in the County of Washtenaw and to finance the acquisition, construction, improvement, enlargement, and repair or maintain convention and entertainment facilities.

The First Amendment to the Ordinance increased the excise tax on all persons operating a business to provide rooms for dwelling to transient guests from 2% to 5% and made other minor changes and became effective 3/1/2009 [Res.No. 08-0244].

The Second Amendment to the Ordinance exempted bed and breakfasts with 14 or fewer rooms for rent, cottages and individuals who periodically lease rooms in their homes from the duty to pay the excise tax under the Ordinance and became effective 10/1/2012 [Res.No. 12-0116].

The Third Amendment to the Ordinance, primarily, clarified the excise tax shall only be assessed for the price of the room and the County Chief Financial Officer shall be responsible to administer and enforce the Ordinance and became effective 12/17/2012 [Res.No.12-0153].

The Fourth Amendment to the Ordinance in Section 12 eliminated the Accommodation Ordinance Commission effective 12/31/2015 and transferred its responsibilities to the newly created Economic Development Coordinating Committee [Res.No. 15-0168]. The EDCC is governed by Washtenaw County Policy and is comprised of 17 Committee members and represents small business, large business, adult/higher education, tourism-based business, the WCCVB board, employment-seeking constituency, DDA/LDFA, food policy council, SEMCo, arts or creative sector, historic district commission, eastern leaders group, and the WC BOC.

Res. No. 15-0168 authorized the County Administrator to execute a ten-year contract with the Washtenaw County Convention and Visitors Bureau [formerly known as the Ann Arbor Area convention and Visitors Bureau].

A Management Agreement with the County of Washtenaw and the Washtenaw County Convention and Visitors Bureau Inc., a Michigan non-profit corporation [corporate identifier 785-104] located at 315 W Huron, Suite 340, Ann Arbor, Michigan 48103 includes 16 Articles.

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For information regarding the Washtenaw County Accommodation Tax Ordinance, please contact Coral Lehman at lehmanc@ewashtenaw.org or by telephone at (734)222-6660.

If you are a provider of accommodations within Washtenaw County and need a form to report your monthly room revenue, fully complete and send along with your remittance as indicated on this payment coupon.